Buying a Car and Worried About Rising Prices? Go Online Before You Go On Lot
CarGurus Study Shows Doing Your Online Price Homework Can Save an Average of $1,500
CAMBRIDGE, Mass., April 26, 2011 -- According to CarGurus (https://www.cargurus.com/), a leading car research and shopping destination, clicking, not haggling, might be the best approach to getting a great deal in this spring's volatile auto market. The company analyzed 45,000 used car listings that were recently pursued by car buyers using CarGurus' free DealFinder online shopping engine, and found the prices for those cars were on average $1,500 below market value for an average savings of 7%.
The data suggests that despite escalating car prices this spring, there remains significant price variability in the used car marketplace that can amount to savings opportunities for informed consumers. In the cases studied, buyers were still able to find great car deals significantly below market values.
"For every good car deal available, there are many more that are overpriced, and that puts an uninformed consumer at a disadvantage at the car lot," said Langley Steinert, founder and CEO of CarGurus. "But online valuation and price comparison tools like Kelley Blue Book and our DealFinder service help consumers unearth the price anomalies in local markets. The shoppers who do their price homework online will not only be better informed, but chances are high they'll also find the best deal."
In this analysis, CarGurus looked at 45,000 car listings recently pursued by buyers using CarGurus' DealFinder, a free, online price comparison engine that analyzes millions of car listings from multiple sources. Across all 45,000 listings, the average savings was 7% or $1,500 below the average market value for similarly equipped cars in the same local market.
Below are some representative examples from the analysis. These are national averages.
| Type | Make | Model | Market Value | List Price | Savings | % Savings |
|---|---|---|---|---|---|---|
| Truck | Chevrolet | Silverado 1500 | $18,992 | $16,130 | $2,862 | 15% |
| Truck | Toyota | Tacoma | $16,144 | $13,833 | $2,311 | 14% |
| Midsize Sedan | Honda | Accord | $12,958 | $11,709 | $1,248 | 10% |
| Midsize Sedan | Chevrolet | Impala | $12,872 | $11,702 | $1,169 | 9% |
| Compact Sedan | Toyota | Corolla | $10,411 | $9,050 | $1,361 | 13% |
| Compact Sedan | Honda | Civic | $10,343 | $9,426 | $917 | 9% |
| Minivan | Toyota | Sienna | $20,604 | $18,764 | $1,839 | 9% |
| Minivan | Honda | Odyssey | $18,498 | $16,926 | $1,572 | 8% |
| SUV | Ford | Expedition | $21,691 | $20,045 | $1,646 | 8% |
| SUV | Acura | MDX | $26,536 | $24,481 | $2,055 | 8% |
About CarGurus' DealFinder
CarGurus' free DealFinder (https://www.cargurus.com/) shopping engine offers consumers a transparent online car shopping experience, giving them instant guidance on the best deals in their local area. Shoppers plug in their zip code and desired car and get an instant view of available vehicles, ranked from great deals to listings that are overpriced. For each listing, DealFinder also provides a detailed price history, so consumers can see how long a car has been on the market as well as any price drops it has had -- information that can be used during a negotiation.
DealFinder rankings are based on a mathematical analysis that factors in prices of millions of current and recently sold comparable listings to determine a car's Instant Market Value and how each listing compares to the current market. Unlike many other listings sites, the search results are unbiased by listings providers.
About CarGurus LLC
Located in Harvard Square, Cambridge MA, CarGurus LLC is an online automotive community founded by Langley Steinert, formerly Chairman and co-founder TripAdvisor LLC. CarGurus' founders, board, and investors bring a wealth of experience from such leading web companies as TripAdvisor, eBay, Expedia, and Yahoo. For more information about CarGurus visit us at www.cargurus.com.
CarGurus
617-216-2900
pr@cargurus.com
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